Amgen 2011 Annual Report Download - page 159

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AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Accumulated other comprehensive income
The components of Accumulated Other Comprehensive Income (AOCI) are as follows for the years ended
December 31, 2011, 2010 and 2009 (in millions):
Foreign
currency
translation
Cash flow
hedges
Available-for-sale
securities Other AOCI
Balance as of December 31, 2008 ................... $25 $ 50 $ 49 $ (7) $117
Foreign currency translation adjustments ........... 25 — — — 25
Unrealized (losses) gains ....................... — (213) 116 (12) (109)
Reclassification adjustments to income ............ — 8 (42) — (34)
Other ....................................... — — — 5 5
Income taxes ................................. (10) 73 (28) 6 41
Balance as of December 31, 2009 ................... 40 (82) 95 (8) 45
Foreign currency translation adjustments ........... (29) — — — (29)
Unrealized gains .............................. — 186 155 1 342
Reclassification adjustments to income ............ — (46) (90) — (136)
Income taxes ................................. 11 (55) (25) — (69)
Balance as of December 31, 2010 ................... 22 3 135 (7) 153
Foreign currency translation adjustments ........... (6) — — — (6)
Unrealized (losses) gains ....................... — (51) 125 2 76
Reclassification adjustments to income ............ — 112 (154) — (42)
Other ....................................... — — — (8) (8)
Income taxes ................................. 5 (21) 14 — (2)
Balance as of December 31, 2011 ................... $21 $ 43 $120 $(13) $ 171
Income tax expense or benefit for unrealized gains and losses and the related reclassification adjustments to
income for cash flow hedges was a $20 million benefit and $41 million expense in 2011, a $71 million expense
and $16 million benefit in 2010 and a $76 million benefit and $3 million expense in 2009, respectively. Income
tax expense/benefit for unrealized gains and losses and the related reclassification adjustments to income for
available-for-sale securities was a $45 million expense and $59 million benefit for 2011, a $60 million expense
and $35 million benefit in 2010 and a $44 million expense and $16 million benefit in 2009, respectively.
Other
In addition to common stock, our authorized capital includes 5 million shares of preferred stock, $0.0001
par value. As of December 31, 2011 and 2010, no shares of preferred stock were issued or outstanding.
16. Fair value measurement
To determine the fair value of our financial assets and liabilities we use valuation approaches within a
hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring
that observable inputs be used when available. Observable inputs are inputs that market participants would use in
pricing the asset or liability based on market data obtained from sources independent of the Company.
Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants
F-35